Indigo Revenue Down 4.9% in Third Quarter

Feb 06, 2013

Indigo Books & Music, Canada’s largest book retailer, reported a 4.9% drop in net revenue in its third quarter, which ended Dec. 29, 2012, to C$335.6 million, compared to the same quarter last year. The company attributed the decrease to lower e-reader revenues and declining sales of print books as its customers shift to digital reading. A lack of big blockbuster books in the season was also noted.

While revenue in Indigo and Chapters superstores was down 5% and Coles and IndigoSpirit small format stores was down 5.2%, online sales were up 3.6%. The company credited that increase to growth in its gift, lifestyle and toy sales, as well as higher book sales.

Net earnings attributable to shareholders increased from C$14.4 million last year to C$22.0 million this year. Indigo said the increase was due to the elimination of losses from discontinued operations as a result of the sale of Kobo in January 2012, partially offset by increased investment in its “transformation” to more diverse product base.

Gross profit was up slightly to C$144.7 million from C$144.4 in 2011. That was due, Indigo said, to a 2.2% improvement in margin rate, which was attributed to a recent shift in its inventory toward higher margin gift and lifestyle products, as well as lower sales discounts, fewer markdowns and shipping more products through its distribution centers.

PW has integrated its print and digital subscriptions, offering exciting new benefits to subscribers, who are now entitled to both the print edition and the digital editions of PW (online or via our app). For instructions on how to set up your accout for digital access, click here. For more information, click here.

The part of the site you are trying to access is now available to subscribers only. Subscribers: to set up your digital subscription with the new system (if you have not done so already), click here. To subscribe, click here.

Thank you for visiting Publishers Weekly. There are 3 possible reasons you were unable to login and get access our premium online pages.

You are NOT a current subscriber to Publishers Weekly magazine. To get immediate access to all of our Premium Digital Content try a monthly subscription for as little as $18.95 per month. You may cancel at any time with no questions asked. Click here for details about Publishers Weekly’s monthly subscription plans.

You are a subscriber but you have not yet set up your account for premium online access.Add your preferred email address and password to your account.

You forgot your password and you need to retrieve it. Click here to access the password we have on file for you.